Profit warning for Pixton firm after end of Carillion

The company has warned that if it cannot recover any costs owed there will be adverse financial impact on the group.
The company has warned that if it cannot recover any costs owed there will be adverse financial impact on the group.

An engineering firm near Mansfield owed more than £1.5 million by collapsed construction giant Carillion has issued a profits warning.

Van Elle, geotechnical engineering contractor based in Pinxton, carried out regular work for Carillion as a specialist lead sub-contractor on rail improvement and maintenance work for Network Rail.
But it has now warned that if it cannot recover any costs owed there will be an “adverse financial impact” on the group.
The group successfully undertook several contracts for Carillion during December – for which it is owed £1.6m.
Work has also continued on existing contracts over January.
A Van Elle spokesman said: “The group will engage with Carillion and its advisers, to determine the status of outstanding payments, but shareholders should note that, in the event Van Elle is unable to recover any monies owed, there would be an adverse financial impact on the group.
“It is too early to say whether there will be any effect on the commencement or completion dates of contracted work with Carillion, or what impact these developments will have on future work programmes.
“However, the group will monitor the situation closely and make further announcements as necessary.”
The company’s order book with expected work with Carillion for the current financial year and beyond was expected to produce £2.5m in revenue.
Jon Fenton, Van Elle chief executive, said: “While it is disappointing to note the Carillion announcement, we continue to develop further our strong relationship with Network Rail and its principal contractors, and remain committed to developing high quality solutions in the rail division both for upgrade and maintenance work.”
Carillion went into liquidation last week with about
£1.5 billion of debt.